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Wool Prices Soften on Back of High Kiwi Dollar
Wool Prices Soften on Back of High Kiwi Dollar and Subdued Demand
New Zealand Wool Services International Ltd reports the combined North and South Island wool sale this week softened on the back of a stronger NZ dollar and subdued demand.
Of the 18,600 bales on offer, 62 per cent sold with all categories softening.
The weighted indicator for the main trading currencies was 1.24 per cent stronger. However the NZ dollar compared to the US dollar, which accounts for most sales, was 2.16 per cent stronger.
New Zealand Wool Services International general manager John Dawson, said the quieter market activity over the past weeks is evidence that down-stream processors and consumers have been balking at the rapid price lifts in recent months. Combined with the continued strenthening of the NZ dollar this is having its effect on the current market.
“A small selection of end of season mid micron fleece were generally 3 per cent softer while fine crossbred fleece and shears were down between 4 and 5 per cent.
“Coarse crossbred fleece was between 4 and 5 per cent softer. However the poorer styled wools, which are in limited supply only dropped between 1 and 2.5 per cent, while coarse shears were between 3 and 6 per cent cheaper.
“First lambs’ fleece weakened between 4 and 7 per cent due to limited interest from China and oddments also softened between 3 and 7 per cent. Hardest hit were the shorter types,” he said.
According to John Dawson there was limited competition at today’s auction from Australasia, Western Europe and the Middle East, with support coming from the United Kingdom, China and India.
The next sale is on 5 May. It will comprise an estimated 4300 bales from the South Island and 1280 bales from the North Island.
New Zealand Wool Services International publishes a detailed weekly report on New Zealand wool auction trends. A summary of this can be viewed at http://www.nzwsi.co.nz . The full report is available by negotiation with the company.
ENDS
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